As we approach the August 17 implementation of the National Association of Realtors® (NAR) practice changes, we want to ensure you're prepared and informed about the necessary actions to protect your organization from claims related to broker commissions. Here are some crucial reminders and updates:
Key Actions Required by August 17
1. Implementation of Practice Changes:
- We recommend all Multiple Listing Services (MLSs) implement the practice changes by August 17. REALTOR® MLSs (those owned exclusively by one or more REALTOR® Member Boards) must adhere to this date to remain compliant with NAR policy.
2. Prohibition of Offers of Compensation on MLSs:
- Offers of compensation are now prohibited on MLSs. However, consumers can still pursue offers of compensation off-MLS through negotiation and consultation with real estate professionals. These offers play a vital role in making homeownership and the benefits of professional representation more accessible, particularly for first-time and historically underserved homebuyers, while also benefiting sellers by expanding the potential buyer pool.
3. Written Agreements for Buyer Agents:
- Agents working with buyers must enter into a written agreement before touring a home. Ahead of the August 17 deadline, NAR encourages all members to address form changes and prepare to educate real estate professionals and consumers about the revised forms. NAR policy does not dictate the terms of buyer agreements, including the type of relationship or the length of the term. Resources such as “Written Buyer Agreements 101” are available to assist with the implementation of these settlement terms.
For more detailed information on the practice changes, visit the FAQ on facts.realtor.
Recent Updates to Facts.realtor
NAR has made several important updates to the FAQ on facts.realtor, including:
- Information for MLS Participants: Guidance for those listing properties to MLSs that did not opt-in to the settlement (#38).
- Pre-Closing Form Disclosures: Additions to the ‘Written Listing Agreements’ and ‘Written Buyer Agreement’ sections regarding required pre-closing form disclosures (#57 and #79, respectively).
- Written Buyer Agreements: Clarification on the requirement for written buyer agreements for all MLS subscribers who have opted into the settlement (#16).
- Offers of Compensation: Details on how the REALTOR® Code of Ethics addresses off-MLS offers of compensation (#48).
- Brokerage Website Links: Parameters of allowable links to brokerage websites that are on an MLS (#45).
- Procuring Cause in Arbitration: A new question addressing this topic (#47).
- Amended Agreements: Updated information (#74).
- Appraisal Process: Updated information (#98).
Centralized Resource Hub
NAR has streamlined the hosting of settlement-related content. Facts.realtor is now the sole online home for all NAR settlement-related information. The contents of competition.realtor and realestatecommissionfacts.com have been migrated to facts.realtor.
We encourage you to review these updates and utilize the resources available to ensure compliance and protect your organization. Staying informed and proactive in these changes will help us all navigate this transition smoothly.
